The Alberta Division of the RCMP in September 2009 has busted a huge “Ponzi” type scam operating in Canada and the United States.

A Ponzi scam is defined here, named after Charles Ponzi, a New England based fraudster from back in the 1920’s. Essentially it is a pyramid scam where the top people in the pyramid get money from each new lower layer.

The first new release by the RCMP is here.
This information was released upon the arrest of the first alleged fraudster.

Subsequently, a second man was arrested upon returning to Canada from Central America and the RCMP release is here
.

The two alleged fraudsters, namely Milowe BROST, and Gary SORENSON had their lawyers make a quick appearance in court on October 19th, 2009, and the case has been put over until the second week of December 2009.

While Rainbow Investigations continues to be swamped with mortgage fraud investigations, we will try to provide an update to this matter.

We should also mention that Calgary has been hit with all kinds of other fraud stories, which we will try to update as we have time.